Prataap Snacks files draft papers for IPO

Joining the IPO bandwagon, Prataap Snacks, which sells products under Yellow Diamond brand, has filed the initial papers with Sebi for a public offer estimated to be worth over Rs 400 crore.
The Madhya Pradesh-based snacks maker is the latest one preparing for an initial share sale. So far this year, more than 25 firms have filed their Draft Red Herring Prospectus (DRHP) with the regulator.
Prataap Snacks' issue would comprise fresh equity as well as offer for sale by some of the existing shareholders.
Through the fresh equity issuance, the company plans to raise up to Rs 250 crore, as per the DRHP.

Up to 29.82 lakh shares would be on offer through OFS and that would include sale of around 1.74 lakh shares by SCI Growth Investments II, Sequoia Capital GFIV Mauritius and by some promoter group entities.
According to sources, the total IPO size is likely to be more than Rs 400 crore.

Proceeds from the public offering would be mainly used for funding capital expenditure requirements, repayment of borrowings, modernisation of existing manufacturing facilities, marketing and brand building activities.
For the year ended March this year, the firm had a net profit of Rs 20.86 crore.
During the same time, the company's net worth stood at Rs 201.09 crore, as per its restated consolidated financial statements.

In recent months, many companies have filed their draft papers for IPOs. These include Avenue Supermarts, Security And Intelligence Services, Shankara Building Products and BSE.